Unilever has agreed to combine a significant portion of its food business with US-based McCormick & Company in a landmark $44.8bn transaction set to reshape the global food and flavour industry.
The deal will see Unilever carve out its food division, excluding operations in India and select markets, and merge it with McCormick to form a new entity generating roughly $20bn in annual revenue. The transaction will be executed through a tax-efficient structure, allowing Unilever to unlock value without triggering US federal income tax liabilities.
Under the terms of the agreement, Unilever will receive $15.7bn in cash, while its shareholders will emerge as majority owners of the combined company with a 55.1% stake. McCormick investors will hold 35%, with Unilever retaining a direct 9.9% interest.
Brandspur Brand News reports that the merger represents a defining strategic shift under Unilever CEO Fernando Fernández, who has been accelerating efforts to streamline the company’s portfolio and focus on higher-growth segments since assuming office in March 2025.
The transaction follows the earlier separation of Unilever’s ice cream business and underscores a broader pivot away from slower-growing packaged food categories toward more profitable personal care and beauty lines.
Executives from both firms say the combination will create a dominant global player in flavour and food solutions, leveraging Unilever’s established brands and international reach alongside McCormick’s category expertise and innovation capabilities.
Unilever’s food portfolio, which includes well-known products such as Marmite, Colman’s and Horlicks, currently contributes just over a quarter of its annual revenue. However, evolving consumer preferences toward fresh and less processed foods have weighed on long-term growth prospects in the segment.
Leadership of the combined company will largely remain with McCormick, with CEO Brendan Foley expected to continue in his role. Senior executives from both organisations will be integrated into the new leadership structure, while Unilever will appoint four members to the 12-person board.
The new entity will maintain its global headquarters in Hunt Valley, Maryland, alongside an international base in the Netherlands, reflecting the geographic footprint of both companies. Plans are also underway to secure a secondary stock listing in Europe to accommodate Unilever’s global investor base.
Meanwhile, Unilever has introduced a temporary global hiring freeze across its divisions, signalling caution amid rising geopolitical tensions and economic uncertainty. The move comes as disruptions in energy and commodity markets continue to pressure costs across the food and beverage sector.
The merger is expected to strengthen scale, improve efficiencies and position the combined business for sustained growth in a rapidly evolving global market.
